If you rent a house or an apartment, your landlord’s insurance only covers the cost to repair the building if there is a fire or other disaster. Your property losses, as well as your liability risks, are not covered. And your landlord’s insurance will not be there for you in the event of a theft, either. Clothing, electronics, jewelry and other valuables are the types of items most frequently listed on renter’s loss claims.
The message is simple and clear: as a renter, you need your own renter’s insurance policy to protect yourself and your personal property.
When purchasing a renter’s insurance policy, here are some important coverage options to consider:
Theft coverage: This is essential coverage; it provides protection if your personal property is stolen.
Replacement Cost Coverage: Replacement cost coverage pays to completely replace lost items, regardless of the current value. You need this as a safeguard against appreciation in the value of your personal property.
Cash Settlement Option: Choose to receive a cash settlement, with no requirement to repair or replace the item.
Water Backup Option: Protect yourself against damage caused by backups from sewers and drains.
Valuable Articles Coverage: Family heirlooms and valuable collections deserve special coverage. You may need valuable articles coverage to properly protect your jewelry, art, collectibles, antiques and memorabilia.
Personal Liability Coverage: Protect yourself and your finances if you are sued for causing accidental bodily injury or damage to the property of others.